Edward Davey, Business Minister with responsibility for the insolvency regime has welcomed an amendment to the Insolvency Rules 1986 from 6 April 2011 that will allow debtors / borrowers with an approved pension to access the Debt Relief Order (DRO) system.

Mr Davey, said: 

“The insolvency regime exists to free people from unmanageable debt and supports them in making a fresh financial start, subject to some conditions. This common sense change will allow those who were previously unable to access a Debt Relief Order, because they had accrued some rights to a pension, fair use of the insolvency regime.”

I could not agree more with this ‘common sense’ change as I was rather amazed that this was not sorted out when DROs were introduced way back in April 2009.

Most pensions are safe for the individual when they go the normal bankruptcy route so why has it taken two years to agree this change of policy?

Still, it is good news for those estimated one in eight consumers who were previously denied access to a DRO to now start to overcome their debt issues.

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